A vision of a OneFreeSociety

Since the proposed governing mechanism is a direct democracy I think there can be any number of models of a free society. What does the society I would like to live in looks like? Let me list some key points:

1. direct democracy for policy and law making decisions
2. goal oriented and fixed amount of taxation that is voted on trough mechanics of direct democracy
3. government that does not make policies, only implements them
4. there are no credit issuing banks - each individual is credited by his network of friends, based on trust and automatically economically rated by a the system of currency
5. each creditor shares the responsibility with the debtor for the debt to get repaid
6. there can be a mechanics of limited bailout the creditor in case of debtor's death or major illness
7. community detects defaults of its participants and helps them to reach self-sustainability
8. small local exchange and currency hubs that are networked together to form a global market and global currency
9. each hub does represent a community with its own rules and its own exchange 
10. each hub has its own policies on social justice and handling of defaults (just a emphasis on points 1 and 9)
11. mechanics of circular compensations can be used to create a global currency and enable global exchange of goods and services

The banks replaced by your friends

The main revolutionary idea is that the creditor is equally responsible for debt repayment as the debtor listed as point 5. It means that it is in the best interest of the creditor and the debtor to repay the debt as quickly as possible. The creditor needs to get his assets back as he is risking loosing them and the debtor has to repay the debt to repair his credit rating. Because the currency not being limited, the debtor can always repay the debt even if there is some interest applied.


The producer is the creditor

Some say that producers to be also creditors will prevent any production, that nobody will go produce if there is no warranty to get paid. Let me point out that this same mechanics are currently separated between producers and banks and all I suggest here is to get rid of the middle man.

The mechanics of producer being a creditor also already exists in a form of a contract or other promise of paying up. I merely suggest to transfer this mechanics from corporate level down onto a peer to peer level and let it replace current centrally managed currencies.

An idea arises that to ease the risk of not getting repaid, we could temporary implement a stability tax, that is used to partially cover some debt if the debtor dies or looses the ability to work. While this idea does have an impact on stability it also does introduce collective responsibility which in the long run leads to corruption and power abuse, but it might be a necessary compromise.


Taking care of the weaker members of the community

The society should take care of those people that can not take care of themselves as a part of insurance for any participant of that society. This would be much easier to do in the proposed system, since the plan is to reach higher efficiency in production of goods and services and free the people of unnecessary work. As said in the previous post about individual versus collective needs there are also common needs that also need to be taken care of. Either trough donations or taxation.


Accumulation of money versus zero debt policy

My guess is that most problems in current society come from low production or wasteful and unnecessary micro management. The whole system is conditioned by the profit oriented policies. And profit rewards and promotes markets where the supply and demand are not balanced, thus the companies and society is rewarding the elites for creating a situation where the needs of people are not met. I have already written about this in the post about economics of open source projects.

Zero debt policy is a pressure on both the creditor and the debtor to repay the debt, as it was already explained above.